Giant Operating, LLC and George Wesley Harris et al.

On September 28, 2009, the SEC filed a settled enforcement
action against Giant Operating, LLC and George Wesley Harris in which they
consented to a preliminary injunction and an asset freeze.† According to the
complaint, from at least December 2007, the defendants fraudulently raised more
than $13 million from 150 investors nationwide in at least five oil and gas
securities offerings, including the ďGiant New Mexico 4.Ē† In offering and selling
these drilling programs, the SEC alleged that Giant Operating ran an
unregistered boiler-room, where approximately 20 sales agents were actively
engaged in cold-calling prospective investors. †In connection with the Giant
New Mexico 4 venture, the SEC alleged that the offering documents contained
several materially false and misleading statements concerning the assets and
potential returns involved in the offering. †

The SEC also alleged that Harris misappropriated and
misapplied at least $2 million of the offering proceeds by transferring funds
to Giant Petroleum, Inc. and DSSC Operating LLC, companies controlled by Harris,
and to Stephen Plunkett.† The SECís complaint names Plunkett, Giant Petroleum
and DSSC as relief defendants.† For more information about the SECís action,
you can read Litigation Release No. 21226
(Sept. 28, 2009).

If you have questions about the Receivership, you can contact Ms. Cook at (214) 593-6429 or by email
at karen@karencooklaw.com.